The HSIF extended its counter-trend rebound yesterday, climbing 333 pts to close at 18,197 pts – reclaiming the 18,000-pt level.
RHB Retail Research, in a note today (Aug 25), said the index began trading at 17,855 pts and rose towards the day’s high of 18,257 pts before closing at 18,197 pts. In the evening, the index gave up 144 pts and last traded at 18,053 pts – remaining above the 18,000-pt level.
The price action suggests the index has found an interim base at the 17,539 pts support. As long it stays above this immediate support, the HSIF will climb higher to test the next resistance at 18,500 pts.
RHB observed the 20-day and 50-day SMA lines still trending lower – suggesting the trend remains bearish in the medium-term.
During the immediate term’s countertrend rebound, RHB will stick to the bearish trading bias.
Traders are recommended to hold on short positions initiated at 19,140 pts or 8 Aug’s close. To manage the trading risks, the initial stop-loss threshold is set at 20,000 pts.
The immediate support is revised to 17,539 pts – 22 Aug’s low – and followed by 17,000 pts. Meanwhile, the immediate resistance has been adjusted to 18,500 pts, and followed by the higher resistance at 19,500 pts.
